base on the instructor’s comments to revise the composition
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7-CorpoCulture.pdf
PLAN FOR TODAY
1. INTRODUCTION
2. CORPORATE CULTURE, GOVERNANCE & ETHICAL LEADERSHIP
3. BUILDING A VALUES-BASED CORPORATE CULTURE
4. HOMEWORK
FOLLOW-UP ON THE EXERCISE
MODEL FOR ETHICAL DECISION MAKING
4. Consider and test alternative actions
Explore alternative options by asking yourself:
What choices are available?
Analyze the new options using the Newspaper Test
5. Make a decision and monitor the outcomes
MODEL FOR ETHICAL DECISION MAKING
CORPORATE CULTURE, GOVERNANCE & ETHICAL LEADERSHIP
CORPORATE CULTURE- DEFINITION
‘’The values and behaviors that contribute to the unique social and psychological environment of an organization.’’
Source: Business Dictionary online
CORPORATE CULTURE- DEFINITION
‘’ It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid.’’
Source: Business Dictionary online
CORPORATE CULTURE- DEFINITION
A corporate culture, translates in;
(1) the ways the organization conducts its business, treats its employees, customers, and the wider community,
(2) the extent to which freedom is allowed in decision making, developing new ideas, and personal expression,
Source: Business Dictionary online
CORPORATE CULTURE- DEFINITION
Also called corporate culture, translates in;
(3) how power and information flow through its hierarchy, and (4) how committed employees are towards collective objectives.
Source: Business Dictionary online
CORPORATE CULTURE- DEFINITION
‘’It affects the organization's productivity and performance, and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, and concern for the environment.’’
Source: Business Dictionary online
CORPORATE CULTURE - EXAMPLE
CORPORATE CULTURE- DEFINITION
A corporate culture rest on a set of identified
values
CORPORATE CULTURE- EXPLAINED
CULTURE & ETHICS
CULTURE & ETHICS
In situations where the laws is an incomplete guide for ethical decision making;
= The business culture is likely to be the determining factor in what gets decided.
Source: Textbook, p.83
CULTURE & ETHICS
An ethical culture therefore would be one in which;
= Employees are empowered and expected to act in ethically responsible ways even when the laws does not require it.
Source: Textbook, p.83
CULTURE & ETHICS
• Ethical decisions and actions can be based on careful deliberations ( the 5 steps Model)
• But our actions and our decisions can also be taken out of our habits and based on our personal character.
• Therefore, how and where we shape our habits and character is also very important
How and where do we shape our
habits and character?
How and where do we shape our habits and character?
It is clear that our habits are shaped and formed by education, this education takes place in every social environment;
-Families -Religions -Schools -Entire societies and cultures -Workplaces
ETHICAL LEADERSHIP & CORPORATE CULTURE
Who is responsible to establish the corporate culture within an organization?
THINK – PAIR - SHARE
ETHICAL LEADERSHIP & CORPORATE CULTURE
Leaders are in charge of cultivating values, expectations beliefs and patterns of behavior that will support ethical decision
making.
The majority of organizations are guided by the tone at the top.
1. Personal behavior
They serve as role model and send clear messages that certain types of behavior are acceptable or not.
E.g. They do not misuse corporate assets
2. The allocation of resources
They make sure to allocate corporate resources to support and promote ethical behavior.
E.g. They make sure that the ethics department is sufficiently staffed and supported financially
3. The business performance is combined with a set of ethical values
People perceive that the ethical leaders’ goals is not simply business performance, but also performance that is consistent with a set of ethical values and principles.
E.g. They make sure that the corporate values are never sacrificed
BUILDING A VALUES-BASED CORPORATE CULTURE
BUILDING A VALUES-BASED CORPORATE CULTURE: EXPLAINED
BUILDING A VALUES-BASED CORPORATE CULTURE
1. Confirm the commitment of the key leaders
BUILDING A VALUES-BASED CORPORATE CULTURE
2. Create and Adopt a Mission-Vision-Values Statement
BUILDING A VALUES-BASED CORPORATE CULTURE
2. Create and Adopt a Mission-Vision-Values Statement
The vision statement describes where the company aspires to be in
the future.
Where will the business be 20-30 years from now?
What does it wish to become?
BUILDING A VALUES-BASED CORPORATE CULTURE
“To establish Starbucks as the most recognized and respected
brand in the world.”
BUILDING A VALUES-BASED CORPORATE CULTURE
“To be the world’s best quick service restaurant experience.”
BUILDING A VALUES-BASED CORPORATE CULTURE
“To be the Harvard of the West Coast.” (in the 1940s)
BUILDING A VALUES-BASED CORPORATE CULTURE
“Democratize the automobile - to become the world's
leading Consumer Company for automotive products and
services.”
BUILDING A VALUES-BASED CORPORATE CULTURE
2. Create and Adopt a Mission-Vision-Values Statement
The Mission Statement is critical because it
clarifies the purpose of the organization and
defines its goals.
Why does the firm exist? What is its purpose? How will it reach its
goals?
BUILDING A VALUES-BASED CORPORATE CULTURE
"Build the best product, cause no unnecessary harm, use
business to inspire and implement solutions to the
environmental crisis."
BUILDING A VALUES-BASED CORPORATE CULTURE
"To create a better everyday life for the many people."
BUILDING A VALUES-BASED CORPORATE CULTURE
2. Create and Adopt a Mission-Vision-Values Statement
The values will guide the organization and the employees in
their decision-making processes and will be at the core of the
business strategy of an organization.
BUILDING A VALUES-BASED CORPORATE CULTURE
•Leadership: The courage to shape a better future •Collaboration: Leverage collective genius •Integrity: Be real •Accountability: If it is to be, it's up to me •Passion: Committed in heart and mind •Diversity: As inclusive as our brands •Quality: What we do, we do well
BUILDING A VALUES-BASED CORPORATE CULTURE
3. Create and Adopt a Code of Conduct
‘’A written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical
standards.’’ Source: Business Dictionary online
BUILDING A VALUES-BASED CORPORATE CULTURE
4. Provide an Ethics Hotline and a clear Policy on Whistleblowing
Businesses must have mechanisms in place that allow employees to
come forward with the questions, concerns and information about
ethical or unethical behavior.
BUILDING A VALUES-BASED CORPORATE CULTURE
5. Provide Trainings and Information
Communication and trainings must be incorporated into the firm’s vocabulary and habits to become essential parts of the
corporate life.
BUILDING A VALUES-BASED CORPORATE CULTURE
6. Adopt Incentives
Incentives encourages and motivates employees to adopt
ethical behaviors.
BUILDING A VALUES-BASED CORPORATE CULTURE
7. Monitor and Audit
CONCLUSION • The corporate culture of an organization plays an important role on the
behavior of the employees.
• The key leaders are responsible to cultivate and strengthen the business’s corporate culture.
• The culture is infused by corporate values that will guide everyday decisions and help keep in line with the business strategy.
• Many tools and mechanisms exist to make sure that ethics is integrated into the decision-making processes : MVV statements, Code of Conducts, Ethics Hotline, Policies on Whistleblowing, Audits, etc.
HOMEWORK
• Consult all the resources on C4 • Read Chapter 4 of your textbook • Answer the questions:
• A)How can the corporate culture influence the employees’ behavior?
• B) How can a business leader influence his or her employees’ behavior?
• C) What is a corporate culture? How is it linked to business ethics?
• D) Name 3 tools that can help building an ethical corporate culture.
